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Turnbull to recontest Wentworth

Isabel Hayes

Former Liberal leader Malcolm Turnbull has made a dramatic return to politics, sparking a rethink on leadership and climate change within his party.

On April 6 Mr Turnbull announced he would quit politics at this year's election, but less than a month later he's back.

"I have reconsidered that decision and I will be running again as a Liberal candidate here in Wentworth," Mr Turnbull told reporters in Sydney on Saturday.

He savaged Prime Minister Kevin Rudd for shelving his promise to start emissions trading next year, saying that was the main reason behind his comeback.

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It's an issue close to Mr Turnbull's heart - he lost the Liberal leadership to Tony Abbott last year over his support for emissions trading.

"I think Kevin Rudd's shelving of the ETS ... is the most extraordinary act of political gutlessness, of political cowardice, any of us could ever imagine," Mr Turnbull said.

"Now I believe that political leaders have to have guts, they have to have courage. And that is the reason why I am stepping back into the fray ..."

Labor's deferral of the ETS removes a major point of disagreement between Mr Turnbull and Mr Abbott, smoothing the path for him to stay on.

Mr Turnbull's return stunned many of his Liberal colleagues, who were scrambling to understand why he had done it and what it would mean. While few had lobbied for him to change his mind, most were not hostile to his return.

While Mr Turnbull sits in the parliament he is seen as a contender for the Liberal leadership. He is also associated with a greener approach to climate change.

He tried to calm his party's nerves by talking down the chances of a leadership challenge.

"I don't think there is any likelihood of that I assure you," he said.

Mr Turnbull said he didn't anticipate being elevated to the front bench before the election. Mr Abbott has offered him a senior role after the election.

Mr Abbott said he was "very pleased" Mr Turnbull was to stay on in politics, praising his "star power".

"Malcolm and I are good friends," Mr Abbott told reporters.

When asked if Mr Turnbull posed a threat to his leadership, Mr Abbott laughed and said: "I'm getting on with my own job."

Liberal sources told AAP Mr Turnbull's comeback was indeed partly inspired by Labor's backflip on the ETS and on a series of other promises like child care centres and roof insulation.

Another factor was the NSW Liberals' desire for him to hold onto his marginal seat.

And some Liberal MPs said he had never wholeheartedly accepted that he would leave politics, a decision his family had wanted.

Treasurer Wayne Swan said Mr Abbott would have little to celebrate in Mr Turnbull's comeback.